Kuwait: Kuwait’s financial center “Markaz” recently released its “KSA Real Estate Outlook H1 2021” report, in which it highlighted the expected GDP growth in Saudi Arabia for 2022, mainly due to price increases oil and increased production.
The report also found positive signs of stability and recovery in the Saudi real estate sector, and expects real estate prices to stabilize after a long period of decline since 2015. Government spending on housing projects Infrastructure under the Vision 2030 program is expected to stimulate non-oil GDP growth and the budget balance, which has been severely affected due to Covid-19, is expected to improve in 2021 and beyond.
Markaz’s report said investments are expected to increase as the government launches major projects like Neom City and pursues the policy of Saudization. In addition, sustained population growth, government subsidies and the adopted mortgage law allow banks to finance home purchases, fueling growth in the residential sector.
Commenting on the current real estate scene in Saudi Arabia, Mr. Bassam N. Al Othman, Managing Director of MENA Real Estate at Markaz, said: “We strongly believe that the Saudi real estate sector is recovering now and we anticipate an acceleration in pace as it continues. over the next few years, based on our expectations of favorable macroeconomic factors during this period. “
“Markaz’s analysis is based on its proprietary ‘real estate index’, which helps investors assess the real estate market. The real estate index is derived from various economic indexes, such as oil and non-oil GDP, inflation rates, increasing employment opportunities and others. We also analyzed data relating to the Saudi real estate market spanning the past seven years from which we have extrapolated our expectations for the sector. Al Othman added.
The report also states that the Saudization program may lead to an increase in employment opportunities, which is yet another positive indicator for the real estate sector. In addition, the resumption of office work and increased tourism are expected to improve overall demand for the office, commerce and hospitality sectors.
About Kuwait Financial Center “Markaz”
Founded in 1974, Kuwait Financial Center KPSC “Markaz” is one of the leading investment banking and asset management institutions in the MENA region with total assets under management of over KD 1.053 billion as of September 30, 2021 ($ 3.49 billion). Markaz was listed on the Kuwait Stock Exchange in 1997.
For more information, please contact:
Media & Communication Department
Kuwait Financial Center KPSC “Markaz”
Phone. : +965 2224 8000
Email: [email protected]
© Press release 2022